A Shocking Cheap Oil Trade

If you’re sitting around trying to make sense of the stock market here on Fed Day, you’re wasting your time…

Case in point: Check out solar stocks.

Oil continues to push post-financial crisis lows. So alternative energy stocks have fallen apart. Makes sense, right? Who’d want to own solar stocks if traditional sources of energy like natural gas are as low as they’ve been this century?

But like I said—the stock market works in mysterious ways. A quick glance at the charts shows that solar stocks are actually doing just fine. Most of them are even powering higher this week, even as oil and natural gas stay chained to the basement furnace.

And today you’re going to see one supercharged solar stock I expect to give you double-digit gains heading into 2016…

Earlier this month I highlighted the dreadful performance of solar supervillain SunEdison (NYSE:SUNE). This stock traded for more than $30 a share as recently as late July. But it was down to $3 and change by early December. That’s a 90% drop in less than five months.

But SunEdison has found new life. This maligned solar stock jumped more than 15% Tuesday. And if you check out some of the other players in the industry, you’ll find that they’re quickly repairing the damage inflicted on their charts over the past six months.

To get a solid overview of the solar space, let’s take a look at the Guggenheim Solar ETF. At the start of the month, this ETF was down more than 20% on the year. But it’s clawed its way back into the light over the past few weeks.

As I said a few weeks ago, despite popular opinion, the solar sector is starting to look like it’s putting in a bottom. And this week’s bullish action confirms we’re possibly witnessing the beginnings of a big move…

Just look at how the Guggenheim Solar ETF is setting up:

“After a painful six-month blackout, the power might be coming back on for this solar ETF,” I wrote on December 2nd. “Note the higher low forming just above $26. That gives aggressive traders a clean shot at playing a potential run here (along with an easy out if the trade gets hairy).”

Just two weeks later, we have a bona-fide breakout on our hands as TAN jumps above $29. The ETF shot up 3% yesterday alone, vaulting TAN above downtrending resistance that’s dogged it since May…

As for our First Solar Inc. (NASDAQ:FSLR) play, it’s off to the races [Ed. note:Click here for the details if you missed this trade]. When we first officially hopped on this stock two weeks ago, I noted that First Solar was hands-down the best looking solar stock on the market right now. FSLR was already posting a strong uptrend off its late September bottom, placing the stock in full recovery mode while other solar stocks are barely flickering.

And even when a nasty gap lower late last week threatened to pull the rug out form under the trade, FSLR recovered and is now right back at its highs.

I know that buying solar stocks when oil is well below $40 might seem crazy.

But don’t worry— it doesn’t have to make sense. It just has to make money.